Complaint launched against SCO claims, Red Hat pledges $1MM to create fund to protect Linux

SAN FRANCISCO—August 4, 2003—Red Hat, Inc. (Nasdaq:RHAT) today made two significant announcements to protect Red Hat Linux customers and the worldwide Linux industry. First, Red Hat announced that it filed a formal complaint against The SCO Group, Inc. (Nasdaq: SCOX, "SCO"). The purpose of this complaint is to demonstrate that Red Hat's technologies do not infringe any intellectual property of SCO and to hold SCO accountable for its unfair and deceptive actions.

"We filed this complaint to stop SCO from making unsubstantiated and untrue public statements attacking Red Hat Linux and the integrity of the Open Source software development process," said Mark Webbink, General Counsel at Red Hat. "Red Hat is confident that its current and future customers will continue to realize the significant value that our Red Hat Linux platform provides without interruption."

To further protect the integrity of Open Source software and the Open Source community, Red Hat has established the Open Source Now Fund. The purpose of the fund will be to cover legal expenses associated with infringement claims brought against companies developing software under the GPL license and non-profit organizations supporting the efforts of companies developing software under a GPL license. Red Hat has pledged one million dollars to be provided as funding in this initiative. For more information please e-mail opensourcenow@redhat.com .

"The collaborative process of Open Source software development which created the Linux operating system has been unjustly questioned and threatened," said Matthew Szulik, Chairman and CEO of Red Hat. "In its role as industry leader, Red Hat has a responsibility to ensure the legal rights of users are protected."

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